A steady income source is a decisive factor when it comes to approving a personal loan application. But what happens if you are unemployed, but have an urgent financial need? Are there any loan options for unemployed individuals in India? Yes, you can get a personal loan for unemployed. Read on to know more about unemployed loans.
What is an unemployed loan?
People with no job, unstable job or fluctuating source of income can apply for a personal loan for unemployed, commonly referred to as an unemployed loan. The loan terms, interest rates and many other loan features of the unemployed loan may differ from other loan types.
How to get an unemployed loan?
Loan for unemployed is a type of credit offered to people with unstable income. This form of credit can be availed under certain special terms and conditions. Such type of loans for unemployed individuals are available as personal credits, secured credits, government loans, etc.
Types of Loans for Unemployed Individuals
The various types of unemployed loans are as follows:
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Secured loan
if you are unemployed and have no income to show to your lender, you can apply for a secured personal loan by pledging collateral or security.
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Gold loan
If you are unemployed, but need an urgent need loan, you can consider taking a gold loan. It’s simple and quick. Just walk into your nearest branch with minimal documentation and get a gold loan approved at an attractive interest rate. In this type of an unemployed loan, the gold is used as collateral.
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Payday loan
If you are unemployed, but are expecting to get a job soon, a payday loan can be a good unemployed loan option.
Government Loan Schemes for the Unemployed
The following are the government schemes for unemployed loans:
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PMRY (Prime Minister Rozgar Yojana):
This scheme is offered to unemployed individuals in the age group of 18 to 35 years, and educated at least until Class 8. The maximum loan amount is ₹5 Lakh and is offered to the unemployed to start their own business.
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Loan subsidy scheme:
This scheme is available only in a few states of India. Under this scheme, 25% of the borrowed amount is subsidised by the state government.
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Agriculture loan:
Unemployed Individuals who are engaged in the agriculture sector are eligible for agriculture loan. The individual has to be age 22 or above.
Frequently Asked Questions
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Who are unemployed borrowers?
Borrowers who are not employed and have no income source, either in employment or business, are considered unemployed borrowers. Students, housewives, and retired people also fall into this bracket.
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What are the options for urgent cash loans for unemployed?
Small cash loans for unemployed are available in various forms. Gold loans and education loans can be taken for specific purposes. Additionally, the government of India offers various loan schemes for the unemployed of India.
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Is there any collateral required for small loans loan for unemployed?
Personal loan for unemployed can be secured as well as unsecured. In a secured loan, you need to pledge collateral to get the loan. On the other hand, an unsecured loan doesn’t need collateral, but the interest rate charged on loan can be high.
